Having read the statement on the WTRLFC website and today's Wakefield Express, I am a little unclear as to how the proposed supporters' trust is expected to work (another example of poor communication from the club!).
First things first, it would appear that WTRLFC Ltd is currently or soon to be (upon service of HMRC's next winding up petition) technically insolvent (i.e unable to pay its debts as they fall due). If this is the case then the current shareholders' stake in the company are worthless.
In view of the franchise application process, the club cannot go into Administration as this would be a black mark in terms of the 'Finance' part of the application. The fact that the RFL will bend the rules for that Crusaders farce is a disgrace but WTW has to work to different rules and avoid Administration if it stands a chance of securing another 3 year licence in the wonderful world of sky's super league.
If up to 500 supporters pay £500k (to be subsequently made available to sort WTRLFC Ltd's arrears position) then the supporters trust should receive 100% (or at least greater than 50%) of the shares in WTRLFC Ltd in exchange for ensuring its survival. The current board would call an EGM of the current shareholders to pass a resolution for all shares to be handed over to the supporters trust. Given time is of the essence, it may be quicker for a number of the current shareholders (with a combined holding greater than 50%) to undertake to transfer their shares to the trust.
The supporters trust would then rightly have total control of the club and appoint a new board of directors who would be given the £500k to spend and go forward within a sustainable business model which does not ever rely on an alleged £350k payment from a 3rd party developer to plug a funding gap in the club's finances.
Please could somebody confirm whether or not this is what is intended by the current BoD and major shareholders?
All views expressed are those of the author and not necessarily those of the RLFANS.COM or its subsites.
Whilst every effort is made to ensure that news stories, articles and images are correct, we cannot be held responsible for errors. However, if you feel any material on this website is copyrighted or incorrect in any way please contact us using the link at the top of the page so we can remove it or negotiate copyright permission.
RLFANS.COM, the owners of this website, is not responsible for the content of its sub-sites or posts, please email the author of this sub-site or post if you feel you find an article offensive or of a choice nature that you disagree with.
